Digital asset custodian launches platform backed by Lloyd’s of London

Lloyd’s of London has added its insurance services to a digital asset custody platform launched by Kingdom Trust.

The Kentucky-based custodian, which claims to be the first regulated custodian for cryptocurrencies, currently offers custodial services for over 30 different digital assets and plans to expand its coverage in future.

Within traditional asset classes, Kingston Trust holds over $12 billion in assets under custody and has moved to establish itself as a one of the only institutional options for the holding of digital assets.

In January this year the firm was acquired by blockchain security startup BitGo, pending regulatory approval, as part of its drive to expand its line-up of custodial services for digital assets with the view of enticing more institutional organisations to the crypto markets.

“Qualified custody by a regulated, insured financial institution is a top priority and critical hurdle for institutions to invest in the digital asset markets,” says Matt Jennings, chief executive of Kingdom Trust.

“By adding another trusted specialist like Lloyd’s to our platform, we’re ensuring that current and future clients will have access to a highly-secure, complete safekeeping solution tailored to meet the challenges of institutional finance.”

The involvement of one of insurance’s best-known names will lend weight to the credence of Kingdom Trust’s offering, especially as the safe custody of cryptocurrencies has been identified as one of the key obstacles to greater take-up of digital assets among institutional finance participants.

Earlier this year, Nomura announced it would become the first bank to offer custodial services for cryptocurrencies, partnering with Ledger, a security and infrastructure provider for cryptocurrencies, and Global Advisors, a bitcoin-specialist investment manager, through a new venture called Komainu.

Since then, both SIX and Northern Trust have announced their own projects related to custody for digital assets. While cryptocurrency exchanges such as Coinbase, Bitstamp and itBIT offer custody services of private keys and cold storage for digital assets, established names such as Nomura, SIX or State Street would ease safety concerns with a bank guaranteeing asset administration and fund management services.